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A motor vehicle bill of sale is a document that records the purchase of a vehicle, similar to a receipt. This video explains the purpose of a bill of sale, distinguishing it from a vehicle title, which is the document that transfers ownership issued by the Department of Motor Vehicles. While a bill of sale does not transfer ownership, it is still important, as 16 states require one. The video covers how to complete a bill of sale and provides a link to a template suitable for each state. Understanding these documents is crucial when selling a vehicle, emphasizing the importance of transferring the title to the new owner.